OptionsHouse

Options Trading News

August 1, 2013  Thu 9:38 AM CT

BID: SEE CHART GET CHAIN FIND STRATEGIES
Sotheby's has been running like a horse, and the bulls are looking for more.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 2,500 August 45 calls for $1.78 and the sale of an equal number of August 43 calls for $2.98. Volume was close to open interest in the 45s, which suggests that an existing long position was probably closed and rolled to the higher strike.

Long calls fix the price where shares can be bought, letting the investor position cheaply for upside in the auction-house stock. Today's transaction let the trader collect a credit of $1.20 and stay exposed to further gains. (See our Education section for more on how options can be used to manage risk.)

BID is up 1.18 percent to $45.53 in morning trading. It's up 35 percent in the last three months amid a recovery in consumer-discretionary stocks. The gains have come despite a weak earnings report in May, and the next set of numbers is scheduled for Tuesday after the closing bell.

Total option volume is quadruple its daily average so far today, according to the Heat Seeker. Calls outnumber puts by a bullish 56-to-1 ratio.
Share this article with your friends


Related Stories

BID

Sotheby's gets vote of confidence

May 26, 2015

The auction house beat quarterly estimates on May 11 and hit a 52-week high last Wednesday as the art market reported record sales.

BID

Bulls raising paddles for Sotheby's

May 15, 2015

The auction house swung to a first-quarter profit on Monday, beating estimates on the top and bottom lines with higher commissions.

Invest Like a Monster - San Diego: June 26-27

Premium Services

Archived Webinar

Education & Strategy

Long synthetic call

Long and short Synthetic stock are two of the six basic synthetic positions that exist. Number three on our list is the Synthetic Long Call...

View more education articles »